One of the first questions I’m asked by clients involves my opinion of the type of investment property to purchase. Each type of property has its own benefits and challenges.
With a condo, owners often face restrictions on the length of time they have with leases. Each condo has an association and that association has waiting periods and limitations. Multi-family and single family houses have no such challenges or restrictions. Condo owners face fluctuations in monthly maintenance fees, and possible special assessments for major maintenance items such as the roof, pool, or elevators.
A single family home gives you the best chance to customize the property and maximize your rental return. Even if you buy a home in a community with similar homes, the investor can modify the intelligently modify the property in order to maximize the return. With a condo, you’re capped on what you can get in rent because you’re competing with other units that are pretty much the same.
A multi-family unit has its own benefits. If there are four units in the building and you lose one tenant, that vacancy will not completely halt your cash flow. You have 75 percent of your revenue still coming in. With a single family house or a condo, that vacancy brings you no return at all.
Please contact us at Florida Property Managers, and we can talk about your specific needs.